Iraq’s SOMO close to Asian storage and refining deal with ExxonMobil

BAGHDAD, Iraq (MNTV) — Iraq’s State Oil Marketing Organization (SOMO) is nearing a preliminary agreement with ExxonMobil to expand cooperation in Asia, with plans covering crude storage, refining, and trading, according to the state-owned Iraq News Agency (INA).

SOMO director general Alaa Nizar Al-Shatri said the talks include securing storage capacity in Singapore and other Asian hubs, alongside potential collaboration on refining and profit-sharing in crude and product trading. 

He emphasized that Asia remains Iraq’s strategic priority, describing it as the fastest-growing region for refining and energy demand. Iraq is already among the top four suppliers of crude to China.

The developments come as Iraqi Prime Minister Mohammed Shia Al-Sudani confirmed that Baghdad has reopened talks to revive the Iraq-Syria export line. 

He added that work has begun on extending the Basra-Haditha pipeline, a 685-kilometer link aimed at enhancing regional export options.

SOMO has recently accelerated international partnerships. Last week, it signed a memorandum of understanding with Oman’s OQ to develop a 10-million-barrel crude storage facility at Ras Markaz near Duqm.

In parallel, Iraq’s Oil Ministry concluded new agreements at the end of August with U.S. firms Schlumberger and Chevron to expand upstream oil and gas projects. 

Officials also confirmed progress in negotiations with Kuwait for the joint development of cross-border fields.

The latest ExxonMobil talks align with SOMO’s long-term strategy to deepen partnerships with refiners across Asia, Europe, the Americas, and Africa, as highlighted in a May 2025 report by Zawya Projects.